A transfer tax is charged at $1.00 per $500 of sale price (rounded up to the nearest $500). If the property sells for $312,000, what is the transfer tax?
Correct Answer
B) $624
Step 1: $312,000 ÷ $500 = 624 units exactly. Step 2: Transfer tax = 624 × $1.00 = $624.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Area calculation involves determining the square footage or acreage of a property using geometric formulas. Key conversions: 1 acre = 43,560 square feet, 1 mile = 5,280 feet, 1 section = 640 acres.
Daily rate calculation involves determining the cost or income per day by dividing the total amount by the number of days in the period (usually a year or a month). This is a fundamental step in proration.
The capitalization rate (cap rate) is the ratio of a property's net operating income to its sale price, expressed as a percentage. It is used to estimate value and compare profitability of investment properties. Cap Rate = NOI / Value.
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